The White House said Tuesday morning that it would make 50 million barrels of oil available from US strategic oil reserves to help cool Kurdish prices.
The release, a combination of a loan and a sale of the reserve, was made in concert with other releases of strategic accumulations by China, India, South Korea, Japan and Britain, the said. White House.
Before the announcement, oil prices fell more than 1% ahead of the expected release of US crude reserves to cool the market, with the barrel also weighed down by the rise in new cases of Covid-19 in Europe.
Earlier the Brent lost 84 cents, or 1.05%, to $ 78.78 a barrel; Meanwhile he West Texas Intermediate (WTI) was down $ 1.1, or 1.45%, to settle at $ 75.65.
The OPEC + alliance has so far rejected repeated requests from Washington to pump more oil.
On Monday, prices rose more than 1% on reports that the group could adjust expected increases to production if major consuming countries release crude from reserves or if the pandemic slows demand.
Prices have fallen below $ 80 a barrel from the $ 86 that touched on October 25 – a maximum of three years – amid the dialogue to release barrels in a coordinated manner and in the face of fear of an impact on the demand for energy from a fourth wave of Covid-19 cases in Europe.
A reserve release is expected to have only a temporary impact on prices, analysts said.
As Europe, and in particular Eastern Europe, struggle to stop the spread of Covid-19, there is a huge risk of quarantine-like restrictions, “said Louise Dickson, an analyst at Rystad Energy.
Reference-www.eleconomista.com.mx